Key Ratio analysis for Bankers
Ron has over thirty years in credit management in the clothing, door and window manufacturing, wine, medical device industry and now direct mailing. He holds a BS in Accounting and has received his certification in credit and finance from the Amos Tuck business school at Dartmouth University. Ron has been in instructor for NACM for 21 years teaching both the CAP and ACAP classes helping over 150 credit people prepare for their credit designations. Ron is currently the Director of Credit and Collections and payment solutions at Mspark Inc, the number two direct mailing company in the US. Ron has been honored with the following awards for his efforts in giving back to the credit community; NACM National instructor of the year 2010, Credit Executive of Upstate NY in 2011 and the NACM CCE award of Excellence in 2013.He has a passion for his profession and is continually looking to share his knowledge so other can grow theirs.
The best tool to help make a sound credit decision is to get audited financial statements from your customer. If you have them there is no gray area about the numbers you are reviewing, assuming you have audited financial statements with a unqualified opinion. In this webinar we will go over financial ratios that can be used from looking at the: Income statement, Balance sheet and Statement of cash flows. I will show you how to calculate the ratios and explain what the resulting numbers mean. Just having one ratio is not enough to make a sound credit decision so looking at several ratios from all the financial statements will give you the information you need to make a final credit decision. We will discuss five areas of ratios: Profitability, Leverage, Activity, Efficiency and Liquidity and the meaningful ratios under each category. I will introduce them to the Altman Z score which can show you the probability of a company going into bankruptcy in the next twelve month. Also, how to determine what the opinion the auditors gave on a set of financial statements and then how to put together a financial summary to support your finding to present to management.
Areas Covered
- How best to analyze financial statements?
- The benefit of financial ratios
- How ratios impact their decision process?
- The three parts of the cash flow statement
- A company that may be heading towards bankruptcy
- The difference in an auditor’s opinions
- All financial statements and what ratios to get from them
Who Should Attend
- Bank lending officers, Bank Managers, anyone working with financial statements.
- Credit managers/Credit analysts/ Collection specialists
- Anyone overseeing the credit and collections area
Why Should You Attend
Trying to decide on making a credit decision to either a company or an individual can be very difficult without having all the information that is available. Banks can use credit reports- however the information in them could be two years old or more. There are bank references, but they may not give you enough information to make a sound credit decision. There are also trade references however, you would think that if companies are providing credit references, they would only list their top 3 customers that they do pay on time. Credit reports for individuals give you a lot more accurate information but there are not as many ratios needed as there are with corporate financial statements. However, to understand the information that is encompassed in the statements and knowing what ratios to use and what they mean is the problem that this webinar will resolve.
Topic Background
30 years of working in credit departments and bankers reviewing financial statements and using ratios to make informative credit decisions.
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$200.00
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